IBM Server Consolidation TCO Analysis -Power for Company XYZ Business Value Report - Prepared For: Company 123
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Prepared For:
Company 123
IBM Server Consolidation TCO Analysis
-Power for Company XYZ
Business Value Report
Report version: 1.0.0 Model version v2.2.2
Copyright ©2001-2012 IBM Corporation and Alinean, Inc. All rights reserved.Project Overview
The proposed business case is based on Migrating Current
Applications to IBM Systems.
Based on a total investment of $148,910 over a Three Years analysis
period, the project is expected to deliver $2,049,785 in net benefits,
providing a 1,281.3% Return on Investment (ROI).
Major project benefits include:
$285,187 Capital Cost Avoidance
$1,764,598 Reduction in Operating Expenses
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Copyright ©2001-2012 IBM Corporation and Alinean, Inc. All rights reserved.
2Financial Summary
Investment Analysis Values
Initial Investment $15,088
Total Three Years Investment $148,910
Total Three Years Benefits $2,056,943
Return on Investment (ROI) 1,281.3%
Payback Period (months) less than 6
Break Even Analysis
Copyright ©2001-2012 IBM Corporation and Alinean, Inc. All rights reserved.TCO ANALYSIS
§ $285,187 Reduction in
Capital Costs
§ $1,764,598 Reduction in
Operating Expenses
§ $0 Reduction Employee
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Productivity Costs
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§ $0 Reduction in Potential
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Revenue Impact
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Copyright ©2001-2012 IBM Corporation and Alinean, Inc. All rights reserved.
4TCO Analysis
Current IBM Savings with
Three Years TCO Results Server System IBM System Solution
Environment Solution (with realization factor)
Total $2,586,633 $536,848 $2,049,785 79.2%
Capital Costs
√ Server Hardware Purchases $3,278 $13,968 ($10,690) -326.2%
√ Software License Purchases $296,997 $1,120 $295,877 99.6%
√ Migration and Training $0 $0 $0 0.0%
Total Capital Costs $300,275 $15,088 $285,187 95.0%
Operating Expenses
√ Server Hardware Maintenance $33,348 $0 $33,348 100.0%
√ Software Support Costs $1,445,384 $133,822 $1,311,562 90.7%
√ Systems Management Labor $632,947 $327,938 $305,009 48.2%
√ Help Desk Support $134,858 $57,127 $77,730 57.6%
√ Facilities Costs $39,823 $2,873 $36,950 92.8%
Total Operating Expenses $2,286,359 $521,760 $1,764,598 77.2%
Copyright ©2001-2012 IBM Corporation and Alinean, Inc. All rights reserved.
5TCO Analysis (continued)
Employee Productivity Costs (Indirect) (Indirect benefit realization factor for ROI) 20.0%
Unplanned Downtime - End User Productivity Impact $0 $0 $0 0.0%
Planned Downtime - End User Productivity Impact $0 $0 $0 0.0%
Time to Market Delays - Operating Efficiency Impact $0 $0 $0 0.0%
Total Employee Productivity Costs $0 $0 $0 0.0%
Potential Revenue Impacts (Indirect)
Unplanned Downtime - Business Impact $0 $0 $0 0.0%
Planned Downtime - Business Impact $0 $0 $0 0.0%
Time to Market Delays - Revenue Impact $0 $0 $0 0.0%
Total Potential Revenue Impacts $0 $0 $0 0.0%
Copyright ©2001-2012 IBM Corporation and Alinean, Inc. All rights reserved.
6IBM Recommended Solution
Total Initial Investment $15,088 :
$13,968.00 1 IBM - Power System 720 Express 3.0GHz (4)
$1,120.00 4 IBM PowerVM
Copyright ©2001-2012 IBM Corporation and Alinean, Inc. All rights reserved.
7Migration Overview
Original Environment IBM System Solution
Server Type Number
Hardware Stack
Dell PE 2550 20
-1 IBM - Power System 720 Express 3.0GHz (4)
server
-Initial Hardware Cost: $13,968
- Original Hardware Purchase Value: $100,000
Software Stack
- 1 Red Hat Linux license
- 4 IBM PowerVM licenses
Software Stack (primary)
- 4 Oracle EE licenses
- 20 Microsoft Windows licenses
- 40 Oracle EE licenses
Copyright ©2001-2012 IBM Corporation and Alinean, Inc. All rights reserved.About Alinean
Alinean, the leading provider of dynamic sales and marketing tools, empowers B2B vendors
to better sell to today's economic-focused buyer. Alinean-powered interactive white papers,
assessments, ROI calculators and TCO comparison tools create more compelling value-
based connections, workshops, presentations and proposals — delivering customized
diagnostics, benchmarks, solution recommendations, benefits, investments, ROI, payback
and TCO advantage proof points.
Leading B2B firms leveraging Alinean tools include: HP, IBM, Microsoft, EMC, Dell, Intel, IDC/
IDG, AT&T, Siemens, Unisys, Thomson Reuters, NetApp, Citrix, Symantec, Novell, Cisco,
Oracle, Sybase, and CA.
Learn more at the Fight Frugalnomics™ Resource Center http://www.fightfrugalnomics.com ,
or by visiting http://www.alinean.com , or calling 407.382.0005.
Copyright ©2001-2012 IBM Corporation and Alinean, Inc. All rights reserved.
9Disclaimer: NOTICE - THIS INFORMATION IS PROVIDED TO YOU AS A TOOL 'AS IS' WITH THE UNDERSTANDING
THAT THERE ARE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND EITHER EXPRESS OR IMPLIED.
ALINEAN DISCLAIMS ALL WARRANTIES INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF
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Copyright ©2001-2012 IBM Corporation and Alinean, Inc. All rights reserved.
10More Information
For more information on how
IBM Power™ Systems
can help your business move to a smarter IT,
please visit:
https://www14.software.ibm.com/webapp/iwm/web/signup.do?
source=stg-mail&S_PKG=us-en-po-cm-powersys
Copyright ©2001-2012 IBM Corporation and Alinean, Inc. All rights reserved.You can also read
